What is Social Value and Why It Matters
Social value represents the wider benefits that organisations and public sector bodies generate beyond the direct goods or services they provide.
For care providers bidding for public contracts, understanding and demonstrating social value has become essential to winning tender opportunities. Local authorities, NHS trusts, and integrated care boards increasingly evaluate social value as a key criterion in their procurement decisions.
Care providers who understand and articulate their social value proposition can differentiate themselves from competitors, demonstrate commitment to community wellbeing, and significantly improve their tender scores. Social value encompasses employment benefits, environmental sustainability, economic growth, health equity, and community engagement; all areas where care providers create substantial positive impact.
The Public Services (Social Value) Act 2012: What the Act Requires
The Public Services (Social Value) Act 2012 fundamentally changed how public sector organisations approach procurement. The Act requires commissioners procuring services above certain thresholds to consider the social, economic, and environmental wellbeing that organisations could deliver when spending public money on contracts.
The Act applies to contracting authorities and utilities, including local authorities, NHS bodies, and public sector organisations. For care tenders specifically, this means commissioning managers must evaluate how prospective providers will contribute to social wellbeing, not simply select the lowest cost option. This shifts procurement away from price alone towards value-for-money considerations that encompass social impact.
Legally, commissioners must consider social value before issuing tenders and integrate it into their evaluation criteria. Care providers responding to tenders must evidence how they will deliver social value throughout the contract term, with measurable outcomes and reporting mechanisms in place. The duty to consider social value applies regardless of contract value, though practical application often focuses on above-threshold procurements.
How Social Value Connects to the Procurement Act 2023
Social Value Shift
The Procurement Act 2023 strengthens and clarifies social value requirements beyond the 2012 Act. Whilst the 2012 Act was permissive, allowing commissioners to consider social value, the 2023 Act ensures social value sits at the heart of procurement strategy. The National Procurement Policy Statement explicitly prioritises delivering value for money with clear focus on social, economic, and environmental outcomes.
Health & Care Impact
The 2023 Act introduces a more sophisticated approach to social value evaluation, requiring commissioners to define social value within their specific context. For health and social care procurement, this means articulating how providers will contribute to integrated care strategies, health equity, economic resilience, and community wellbeing. Care providers must understand both Acts and position their services within this evolving legal landscape.
Social Value in Care Tenders
Social value now accounts for up to 30% of tender scores. Our guide explains the Social Value Act, TOMs framework, how to measure and evidence your social impact, and what commissioners expect from care providers.
Social Value in Care Tenders: How Commissioners Evaluate
Structured Framework for Social Value Assessment
Local authorities and NHS commissioners evaluate social value in care tenders using a structured framework. Tender evaluation typically splits between price and quality elements, with social value incorporated within the quality component. Evaluation panels assess how providers will deliver against specified social value themes over the contract period.
Tailored Social Value Criteria by Service Type
Commissioning teams define social value criteria tailored to their area. For adult social care, this might emphasise employment for local residents, supporting unpaid carers, or reducing health inequalities. For children's services, commissioners might prioritise community engagement, family support, or educational outcomes. Care providers must read tender documentation carefully to understand the specific social value priorities and weightings.
Social Value Scoring
Evaluation panels assign scores based on evidence, commitment, and likelihood of delivery. Providers who offer vague aspirations score poorly. Those who present detailed, measurable commitments backed by monitoring plans and evidence from previous contracts score highly. The quality of social value responses directly influences tender success, often carrying 20 to 40 percent of total evaluation points.
The TOMs Framework: Themes, Outcomes, Measures
Introduction to the TOMs Framework
The Social Value Portal developed the Themes, Outcomes, Measures (TOMs) framework as a standardised approach to measuring social value. The TOMs framework categorises social value into distinct themes, each with specific outcomes and measures. Adopting TOMs language in tender responses helps providers demonstrate structured thinking and alignment with commissioners' expectations.
Key TOMs Themes and Outcomes
Key TOMs themes include economic growth and local investment, skills and employment, health and wellbeing, community engagement and social cohesion, and environmental sustainability. Within each theme sit measurable outcomes; for example, under skills and employment, outcomes might include apprenticeship numbers, local recruitment percentages, or training places created. Care providers choose the TOMs themes and outcomes most relevant to their organisation and services.
Measuring Social Value with TOMs
Measuring against TOMs provides credibility. Rather than claiming 'we support local communities', a care provider using TOMs might specify 'we will recruit 80 percent of new staff from within the local authority area and deliver 40 staff training and development places annually.' This clarity helps commissioners assess delivery likelihood and monitor outcomes during contract delivery.
Common Social Value Themes in Care Tenders
Care tenders focus on key social value themes that reflect workforce impact, local economies, sustainability, and community wellbeing.
Employment and Skills
Employment and skills represent the strongest social value theme for care providers. Care organisations directly employ significant workforces and can commit to local recruitment, apprenticeships, and staff development. Commissioners value commitments such as recruiting from disadvantaged groups, supporting staff progression, and providing training aligned to workforce development needs
Local Economic Growth and Supply Chain Benefits
Local economic growth and supply chain benefits form another important theme. Care providers commission equipment, uniforms, services, and supplies. Committing to procure from local small and medium enterprises, social enterprises, or community benefit organisations demonstrates economic contribution. Defining 'local' by postcode district or local authority area adds specificity.
Environmental Sustainability
Environmental sustainability increasingly appears in care tenders. Providers can commit to carbon reduction targets, sustainable procurement practices, waste reduction, and transport sustainability. Health and care settings generate significant environmental impact; demonstrating commitment to sustainability aligns with NHS net-zero targets and local authority environmental strategies.
Community wellbeing and health equity address core care sector aims. Care providers might commit to reducing health inequalities for underrepresented groups, supporting unpaid carers, volunteering in local communities, or engaging service users and families in service design. These commitments demonstrate values alignment with commissioners' priorities.
Writing Social Value Responses That Score Maximum Marks
High-performing social value responses are clear, measurable, evidence-based, and aligned with commissioner priorities.
Understanding Commissioner Priorities
Winning social value responses share common characteristics. First, they demonstrate clear understanding of the commissioner's context and priorities. Providers read the local authority's health and wellbeing strategy, integrated care strategy, and economic development priorities; then position their social value commitments within these frameworks.
Measurable Commitments
Second, responses include specific, measurable commitments rather than aspirations. Instead of 'we will support the local economy', specify 'we will purchase 30 percent of supplies and services from businesses located within the local authority boundary.' Include baseline data, targets, and timescales. Clarity demonstrates feasibility and commitment.
Evidence of Past Delivery
Third, high-scoring responses evidence previous delivery. Providers reference similar commitments delivered on previous contracts, provide case examples, and include testimonials from previous commissioners. Historical evidence builds confidence in delivery capability. If this is your first contract, explain how you will ensure delivery through monitoring systems and partnership working.
Monitoring and Reporting Plans
Fourth, responses include robust monitoring and reporting plans. Specify how you will collect data, report progress, and address underperformance. Outline quarterly reporting schedules, named individuals responsible, and mechanisms for continuous improvement. Commissioners seek assurance that providers will actively manage and report social value throughout the contract term.
Value for Money
Fifth, responses demonstrate value for money. Social value commitments should not increase contract cost. Instead, frame social value as integral to service delivery. Local recruitment might cost no more than national recruitment; environmental measures might reduce operating costs; community engagement might improve service quality at no additional cost. Position social value as good practice rather than cost burden.
Social Value Examples for Care Providers
Strong social value responses include practical, real-world commitments across workforce, community, and sustainability.
Local Recruitment
Local recruitment commitments might state: 'We will recruit 85 percent of new care staff from within the local authority area, rising to 95 percent within two years. We will advertise vacancies through local jobcentres, community organisations, and local media before accessing national recruitment channels.'
Apprenticeships and Training
Apprenticeship and training provision could include: 'We will create 12 apprenticeship places annually, supporting young people aged 16 to 24 not currently in education or employment. We will fund accredited social care qualifications for 20 existing staff members annually, supporting progression to senior roles.'
Community Engagement
Community engagement examples include: 'We will establish a community advisory forum including service users, carers, and local representatives, meeting quarterly to shape service development. Forum members will participate in recruitment panels, staff training, and service evaluation.'
Health Equity
Health equity commitments might state: 'We will implement targeted engagement with underrepresented groups, including people with learning disabilities, LGBTQ+ communities, and ethnic minorities. We will offer accessible information, advocacy support, and culturally sensitive service delivery to address health inequalities.
Carer Support
Carer support could include: 'We will establish an unpaid carer support programme, offering information, guidance, and respite access. We will employ a dedicated carer liaison officer and create an annual carers' event. We will measure carer wellbeing and quality of life improvements.'
Environmental Sustainability
Environmental sustainability might include: 'We will achieve net-zero carbon across our operations by 2030. We will transition to 100 percent renewable electricity, reduce travel emissions through remote support and local staffing, and implement zero-waste procurement practices. We will measure and publicly report annual progress.'
Social Value in Care Tenders
Social value now accounts for up to 30% of tender scores. Our guide explains the Social Value Act, TOMs framework, how to measure and evidence your social impact, and what commissioners expect from care providers.
Social Value in Supported Living and Domiciliary Care Contracts
Social value plays a central role in supported living and domiciliary care contracts, shaping outcomes for service users and communities.
Social Value in Community-Based Care Services
Supported living and domiciliary care tenders emphasise social value highly. These services directly support vulnerable people in community settings, enabling independence and wellbeing. Social value commitments should align with service objectives and demonstrate enhanced outcomes for service users and communities.
Supported Living Social Value Commitments
In supported living contracts, social value might focus on service user employment support, community integration, and reducing dependency on formal care. Providers could commit to employment support for service users, volunteer opportunities in local communities, or partnership with local enterprises to create work experience placements.
Domiciliary Care Social Value Priorities
Domiciliary care tenders increasingly require commitments to carer support, local recruitment, and community engagement. Providers might commit to recruiting carers from the local area, offering training and progression opportunities, and creating forums where carers influence service development. Supporting the care workforce directly benefits service users through continuity and quality.
Measuring and Reporting Social Value: SROI and Proxy Values
Social Return on Investment (SROI) offers a framework for quantifying social value. SROI analyses how much social value is created for every pound invested. Whilst SROI calculation can be sophisticated, the basic principle is simple: identify outcomes, assign monetary values using established proxies, and calculate total social value against investment.
Proxy values come from research and established datasets. For example, research quantifies the monetary value of employment support, apprenticeships, or health improvements. Providers can reference established proxies such as the wellbeing value of employment or the health benefits of social connection. Using recognised proxies strengthens credibility and facilitates comparison with other providers.
Annual reporting communicates social value delivery to commissioners. Reporting should be transparent, timely, and evidence-based. Providers demonstrate commitments met, outcomes achieved, and challenges addressed. Regular reporting builds trust, allows corrective action if needed, and provides data for contract renewal discussions.
Common Mistakes Providers Make With Social Value Submissions
Avoiding common mistakes in social value submissions improves credibility, alignment, and delivery success.
Lack of Integration with Service Delivery
The most common mistake is treating social value as separate from core service delivery. Strong responses integrate social value throughout. Providers frame social value not as addition to contracts but as central to how they deliver quality care. Integration ensures feasibility and demonstrates values alignment.
Non-Specific Commitments
Another frequent error is making non-specific commitments. 'We support the local community' scores poorly without detail. Specific commitments with targets, timescales, and evidence demonstrate seriousness. Vagueness suggests social value is secondary rather than embedded.
Overpromising Outcomes
Overpromising creates risk. Providers sometimes commit to unachievable targets, then fail to deliver. This damages reputation and contract relationships. Commit only to outcomes you can realistically deliver, backed by evidence and robust monitoring.
Ignoring Commissioner Context
Ignoring commissioner context is another common mistake. Effective responses address specific commissioner priorities stated in tender documents and local strategies. Generic social value statements that apply equally to any tender miss opportunity to demonstrate alignment and relevance.
Weak Monitoring and Reporting Systems
Finally, many providers neglect monitoring and reporting infrastructure. During tenders, providers commit to measurement and reporting. If systems are not established, measurement becomes difficult and reporting suffers. Invest in systems before tender submission.
How Care Sync Experts Helps Care Providers Maximise Social Value Scores
Social Value Strategy and Tender Support
Care Sync Experts works with care providers to develop robust social value strategies and tender responses. We help organisations identify relevant social value themes, develop specific commitments, and present evidence of delivery capability. Our support covers strategy development, tender response drafting, and post-award monitoring planning.
Aligning Commitments with Commissioner Priorities
We analyse commissioner priorities and local context, ensuring your social value response addresses identified needs. We work with your teams to identify existing social value contributions, often unrealised, and develop new commitments aligned to business capability. We draft clear, specific commitments with measurable targets and realistic timescales.
Evidence, Monitoring, and Delivery Planning
We review evidence of previous delivery, helping you communicate historical commitments and outcomes effectively. We develop monitoring and reporting plans that are achievable and transparent. Throughout the process, we ensure social value is positioned as integral to your service offer, not added cost or afterthought.
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